Ask HN: Is there a $15k penalty for not accepting YC's offer to join?

Re:Ask HN: Is there a $15k penalty for not accepting YC's of... by vikramkr on Friday July 12, 2019 @01:23AM (#20418433)

I don't think it is a penalty, you arent asked to pay anything. From how I read that, if you are accepted into the main program, then you are not considered anymore for the 15k grant and are out of the running for that - it just becomes irrelevant. It's not that you get 15k, then get in, then get the 15k taken away from you. You won't even be considered for the grant.

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Re:Ask HN: Is there a $15k penalty for not accepting YC's of... by bruceb on Friday July 12, 2019 @02:50PM (#20423304)

You not asked to pay anything. But here are the 4 possible outcomes from completing startup school and trying for the $15k:

1. Go through it, apply for core, don't get accepted don't get $15k

2. Go through it, apply for core, don't get accepted to core but get $15k

3. Go through it, apply for core, get accepted to core, enter core, don't get $15k (but get more money, with strings)

4. Go through it, apply for core, get accepted to core, decline core, don't get $15k

Point is if you are accepted in to the core program then clearly you are good enough to get the $15k. But if you decide to NOT enter the core program, they seem to pull that $15k which clearly you are good enough for.

For some startups, they might actually prefer the no strings $15k over the more money and network but giving up equity.

Now of course YC is not obligated to give anyone $15k. But it seems they are pulling the $15k which they consider you at least good enough for, if you don't accept their terms. Which is again their right, though should be clear.

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Re:Ask HN: Is there a $15k penalty for not accepting YC's of... by vikramkr on Friday July 12, 2019 @06:02PM (#20424917)

From their perspective if they think you are far enough along for the core, you might be too good for the grant. I think the aim is to support those marginal companies that just need a bit of a push to become investment ready, not the companies that are already good enough to raise from YC.

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